Everything You Need To Know About Defi Platform The late 2000s was the era where blockchain technology began. Numerous firms have been looking for ways to use the technology in various ways. The emergence of cryptocurrencies followed by the financial sector looking for ways to use blockchain technology solutions introduced the notion of Defi, commonly known as Decentralized Finance. Defi referred to an idea that promises to be the banking sector for cryptos, without any need for intermediaries. In this blog, we will explain what Defi is, and how it works as a popular platform today.
What is Defi and how does it work? Decentralized finance is a new-age financial system based on blockchain technology that functions without any use of intermediaries. The blockchain that hosts the Defi lending platform development system replaces the role of the central authority. However, it also functions as a peer-to-peer transaction system. The concept is to provide users with a transparent, open, quick, and permissionless transaction experience. Smart contracts get entirely exploited here due to their self-upgrade feature depending on the received data with no third-party intervention. The two modes of Defi transactions include Defi lending and Defi borrowing. Let's understand both modes.